Rumors are circulating that Apple is putting pressure on Taiwanese companies responsible for delivery of components for the iPhone 7 to lower their price points despite the fact that it’s believed that Apple is not ordering nearly as many units. Apple is, if the rumors are true, demanding these companies deliver prices on par with mainland China suppliers despite the fact that the Taiwanese parts are generally of a higher quality.
Rumors and more rumors where the iPhone 7 is concerned
I think it’s safe to say that this is probably around the 50th time I’ve been tasked with writing about iPhone 7 rumors so far this year. Unfortunately, because it is Apple, that is all we can give you. The company is nothing short of tight-lipped in everything it does. While Elon Musk will happily tell you that Apple is working on a car calling it the worse kept secret in the Valley (Silicon) there hasn’t been much from the company itself with regards to Project Titan that the media has taken to calling it.
According to an editorial by Digitimes Apple is asking Taiwanese suppliers for a 20% price cut on components despite ordering 30% less than they did from Taiwanese suppliers to ultimately assemble the iPhone 6S and iPhone 6S Plus.
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Apparently, these demands have not been extended to either Taiwan Semiconductor Manufacturing company (TSMC), nor Largan Precision. The former is the A10 chip “foundry” for Apple while the latter generally supplies the camera components for the iPhone line (something that is meant to be improved dramatically with the release of the iPhone 7 and a more expensive and larger phone rumored to include a Apple’s first use of a dual-lens camera in its iPhone line.
I may do a bit of rumor roundup in a few paragraphs but let’s take a look at what we are absolutely certain of with regards to the iPhone 7. Again, that will be a short list as Apple hasn’t even given a release date for the iPhone 7 if that is even what the company plans to call it.
Most expect the unveiling of the iPhone 7 to come on a Wednesday as it generally does for new iPhones. Most are calling for September 7, two days after the Labor Day holiday but not even this is certain.
What is certain is that Apple has become the giant that is because of the iPhone and iPhone sales. And those sales have slipped this year, something that Apple is not accustomed to and drove its stock down after its Q2 earnings call.
Additionally, Samsung has had a banner year with the release of the Galaxy S7 and Galaxy S7 Edge and those that have had a moment to play with the Galaxy Note 7 which was unveiled but has yet to go on sale are largely giving it rave reviews.
We know that Apple will first sell the iPhone 7 in the United States, the UK and a few European countries first.
Apple will surely ship the iPhone 7 with iOS10 installed, developers have had a few months to work with the beta iOS now and it’s a certainty that Apple will not be shipping its flagship offering with an older operating system that customers will need to update within weeks of buying what is sure to be an expensive phone despite this reported squeeze being but on Taiwanese component suppliers.
After that, we’re all just going to have to wait.